Smart Home Opportunity for Telcos & Utilities

© Presciense Ltd, All Rights Reserved.
Smart Home Utility & Telco
Business Case
Jonathan Lishawa
CEO @ Presciense © Presciense Ltd, All Rights Reserved.

The telco and utility market is highly competitive.
▪ Telcos and utilities are under pressure to find new
revenue streams and differentiate their offering.
The smart home fits nicely with the traditional
telco and utility business models.
▪ Subscription revenue are at centre of the telco and
utility businesses and smart home can be used to
expand this model.
▪ IHD, CAD and Gateway products and network
infrastructure can be leveraged to deliver smart home
services.
▪ Existing managed installs and customer support
experience.
Smart Home Opportunity

Business Case

Smart technology’s first priority is to improve the
current user experience which is the key to customer
retention, cost reduction and increased brand value.
▪ 87% are willing to pay more to their service provider for a
better experience1
▪ 40% will walk away from a business that fails to offer
them a high quality digital experience3
▪ 14 point Net Promoter Score (Brand) advantage for
service providers with better customer experience1
Once the customer is and familiar with using
smart capabilities they are more likely to buy into the
smart home.
▪ 35% purchase additional service from service provider
that provide a good service2
User Experience
1 Capgemini - The Disconnected Customer 2017, 2 McKinsey - Higher Satisfaction at Lower Costs 2015
3 EY - Digital Australia 2017

Consumers spend on average 2 ½ hours a day on
smartphones which is more than any other digital medium
and growing year on year.1
▪ 81% have smartphones1
▪ 80% of smartphone usage is App based1
▪ More than 51% would prefer to use a mobile App to manage
their products and services2
Service providers that offer a mobile App see far greater
usage than any other digital medium.
▪ 50% of digital media time spent on smartphones3
▪ 83% of time spent in mobile Apps3
Mobile First
1 Delloite - There is no place like phone 2016, 2 Alcatel-Lucent - Consumer Mobility Study 2017
3 comScore Mobile App Usage - Survey 2017
Smart Router
Presciense Smart Router App

Consumers have embraced voice control with
Amazon, Google and Apple driving the take up of
smart home technology with their Alexa, Now and
Siri voice assistants.
▪ 35m Alexa & Google Home devices by the end of
20171
▪ 91% with voice assistants are interested in a home
automation2
▪ 60% with voice assistants use them more than 4 time
a day2
▪ Top six usages; music, weather, news, traffic, trivia &
calendar2
▪ More than 15k Alexa skills offering support for 3rd
party services3
Voice Control
1 AIB Research – 2016, 2 IFTTT Survey – 2017, 3 Business Insider - 2017

Security and safety followed by energy and
lighting are the most appealing home automation
services to consumers driven by brands such as
Nest, Philips, Tado.
▪ 53% interested in smart security1
▪ 50% interested in smart heating & lighting1
Opportunity to cross-sell home insurance with
smart security and safety services and up-sell
managed install and support.
▪ 1 in 5 insurance claims in the UK is for water damage
costing on average £4k2
▪ Managed install reduces returns and offers additional
revenue opportunity3
Home Automation
1 GfK - Smart Home 2016, 2 IDC - Intelligent Insurance 2015, 3 EY – The Bundle Jungle 2017

Smart home cameras represent an easy add-on
for service providers to upsell to their customers
and support through connectivity to their access
gateway.
▪ 14% of consumers would like to buy a smart
camera1
▪ 25% of customers that purchase a smart camera
take a video backup service
Cameras can be offered to customers as an
incentive to renew contracts thereby reducing
churn.
▪ 20% reduction in churn for customers taking
bundles2
Video Backup
1 GfK - Smart Home 2016, 2 EY- The Bundle Jungle 2017

Consumers want home automation solutions that
are integrated with their energy supply and that
benefit the environment.
▪ 89% believes that buying environmentally-friendly
products and services make a difference to the
environment1
▪ 88% of households say saving money on electric bills
is their primary motivator for being more energy
efficient3
▪ 85% of consumers feel smart meters have a positive
impact on their utility service6
▪ 66% willing to pay more for products and services
that benefit the environment2
▪ 50% of all EU appliance sales “Better-than-A+ rated” 5
Energy Management
1 European Commission 2015, 2 Smart Energy GB 2017, 3 Nielsen 2016,
4 EON 2017, 5 GfK 2016, 6 Uniliver 2017

Consumers want diagnostics capabilities to
support self-service and improve their quality of
service.
▪ 51% would prefer to self-serve1
▪ 20% reduction in cost of support2
Smart diagnostics can inform users (in App or via
notifications) and data analytics can identify
service or hardware failure trends and proactively
respond.
▪ Automatically notify customers when issues are
detected or for planned maintenance
▪ 99.98% likelihood of router failure in the next week
Self Service
1 Alcatel-Lucent - Consumer Mobility Study 2017, 2 Capgemini - The Disconnected Customer 2017

Consumers want to be in control of their personal
information and know who it is shared with.
▪ 89% want to know who has access to their data1
▪ 86% want to know how their data is used1
Consumers are willing to share data when that improves
the quality of their services or offers a benefit-in-kind.
▪ 78% think telematics devices that reduce the cost of their
insurance premium are a good thing2
▪ 57% are happy to have a smart energy meter installed that
helps them reduce consumptions2
▪ 50% are willing to share data and control in exchange for
discounts to the cost of their service3
GDPR will mean any/all data collected by service
providers will need to have the consumers consent.
Data Collection
1 Opinium Research – 2017, 2 KPMG – 2017, 3 Parks Associates - 2017

Consumers are concerned over how their personal
data and privacy is protected in a connected world.
▪ 72% are concerned over privacy online1
▪ 66% will stop or not choose a service provider that has
a poor record on protecting their data1
▪ 32% are prepared to pay more for increased protection1
Consumers expect their service provider to protect
their data in a simple and convenient way.
▪ 93% prefer to use a social login over traditional email
registration2
▪ Facebook took the lion’s share with 53%, while Google,
Twitter and others made up the remaining 40%2
Data Protection
1 YouGov – 2017, 2 LoginRadius - 2015

Analysing data can reduces business risk and
improve quality of consumer service.
▪ 49% of businesses assert that the greatest benefit
of using analytics is better decision-making
capabilities1
Specific benefits to telco and utilities are:
▪ Real-time monitoring to reactively manage services
▪ Trend analysis to proactively identify service issues
before they impact the customer
▪ Disaggregation of electricity data for better demand
side management (DSR)
▪ Quickly understand the impact of new services
▪ Know you’re customer and address their needs
Data Analytics
1 Gartner - 2017
0% 10% 20% 30% 40% 50%
Better decision-making based on
data
Better enablement of key
strategic initiatives
Better relationships with
customers and business partners
Better sense of our risk and ability
to react to changes in the market
Better financial performance of
the organization
Better capability to respond to
buying trends in the marketplace
Analytics is key factor in making the right
decisions

Consumers like service bundles as it offers
convenience and perceived savings.
However there are almost no service providers
that offer a single integrated mobile app to
manage their account and all their services.
▪ 93% of customers take more than one service from
telcos1
▪ 70% of those taking bundled services say they’re
satisfied with their service provider compared to 55%
of non-bundlers2
▪ 20% reduction in churn for customers taking bundles2
▪ Better ability to cross-subsidize new services to
quickly enter new markets or offer competitive pricing
Bundled Services
1 Ofcom - UK Market Overview 2017, 2 EY- The Bundle Jungle 2017

Presciense Capabilities

Smart Router & Diagnostics
Our apps have a flexible home screen design
and functionality, which can be extended.
▪ Wifi Management
▪ Network Map
▪ Firewall & IDS Security
▪ Remote Access
▪ Messaging
▪ Consumption
▪ Parental Control
▪ Payments
▪ Diagnostics
▪ Preferences
▪ Speed Test
▪ Interactive Feedback
Smart Router
Smart Router

Smart Meter IHD & CAD
Our IHD and CAD provide consumption data
and improve your customers experience.
▪ Electricity, gas & water meters
Learn customers preferences and communicate
with them.
▪ Real-time data collection for gas, electricity, water
& messaging
Support the upsell of smart home services to
customers and add value to your proposition.
▪ Heating and lighting
▪ Safety and security
DSR to balance the supply of electricity.
▪ Change behaviour and incentivise the use of solar
panels and battery storage

Presciense and Sercomm can provide a range
of smart home cameras that support both peer-
2-peer live streaming connections, event driven
and constant video backup services.
▪ 24/7 live video streaming
▪ 1080p, 720p HD
▪ 100, 120 & 180 degree view
▪ Motion detection
▪ Night Vision
▪ Talk and listen
▪ WiFi & Ethernet
▪ Alerts on your mobile phone
▪ 24 hours, 1 & 2 weeks, 1 month backup
Smart Camera & Video Backup
Monitor your home with HD video
streaming right to your smart app. We’ll
deliver your new camera to your door
and setup is quick and easy.
Camera 1

Presciense and Sercomm can provide a range of
smart home sensors that support the delivery of
energy, security and safety services.
▪ Smart Hub
▪ Thermostat
▪ Smart LED bulbs
▪ PIR motion,
▪ Door & window sensors
▪ Smoke & water detector
▪ Temperature & humidity
Smart Energy, Security & Safety
Secure your home with our
comprehensive Smart Security and
Safety pack and manged all your
devices within one app.
Presciense also supports integration
with 3rd party products that include
Amazon, Google, Philips, Tado,
Toshiba, IKEA and Centralite.

Presciense voice control delivers:
▪ Local voice processing ensures service works even
when connectivity is down
▪ Compliance with HIPAA and GDPR regulations
▪ Coexist and leverage existing Alexa & Google Now
▪ Presciense skills for voice triggered smart home
control, payments and smart gas and electricity meter
credit function
Smart Voice Enabled IHD & CAD

Presciense’s platform, smart In-Home Display
and Consumer Access Device support smart
services, Solar PV installations and both
primary(utility) and secondary (renewable)
meters.
▪ Electricity, gas and water meters
▪ Real-time data collection and messaging
▪ Demand side management to balance the supply of
electricity and Home Energy Management System
(HEMS); heating and lighting to reduce load at peak
demand
▪ Change behaviour through smart home services and
incentivise the use of fuel cells & solar panels
▪ Integration with renewable and EV charging
solutions
Smart Solar & Storage

Presciense IHD, CAD and gateways can collect
real-time data and securely store it for analysis.
▪ Lightweight and secure communication from the
IHD, CAD or gateway to our cloud based service
using MQTT and X.509 certificates.
▪ Batch intervals can be defined by the utility
company (such as every 15 minutes) whilst
retaining granular data (such as every second).
▪ In the event that a batch is missed due to loss of
connectivity it will be retransmitted when
connectivity is re-established with an additional 24
hour batch for redundancy.
▪ Data are retained for 3 years (or more) in our
secure and scalable data warehouse for future
analytics.
Data Collection & Analytics

Presciense has a holistic approach to data and devices
security.
▪ Firmware, OS and application images are delivered encrypted
through differential OTA updates.
▪ Hardware supports tamper protection, secure and verified boot.
▪ Apps support single-sign-on and 2-factor authentication which
removes passwords.
▪ Data is controlled by our own local message broker (MQTT) on
all gateways and Apps (SDK) and synchronised with our cloud
via TLS.
Our solutions support split brain scenarios and General
Data Protection Regulation.
▪ Data, configuration and ACLs are kept encrypted (AES256)
locally ensuring continuation of service even when connectivity
is lost and only authorise users and devices can connect.
▪ Users have more control over their privacy and the data they
share or exchange for a benefit-in-kind and conforms to GDPR.
Device & Data Security

Business Models

Mobile apps and single-sign on improve
customer experience.
▪ Local and remote router management
▪ Easy setup with single-sign-on
20% saving through advanced self-
service and notifications.
▪ Alerts and messages on network and
service issues
▪ Smart diagnostics to help resolve WiFi and
connection problems
Support for additional services.
▪ Smart camera, home and energy services
0
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Smart Router Service Cost Smart Router Diagnostics Cost Smart Router Volume

IHD/CAD and mobile apps easy pairing
and single-sign on.
▪ Zigbee SE, SMETS 1 & 2 certified
▪ Local and remote IHD/CAD management
▪ Easy setup with single-sign-on
Advanced diagnostics
▪ Alerts and messages on network and
service issues
▪ Smart diagnostics to help resolve Zigbee
and WiFi connection problems
Data collection
▪ Data sub 10 seconds with 3 years storage
Support for additional services.
▪ Smart camera, home automation and
management services
Smart IDH/CAD & Data Collection
0
200,000
400,000
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800,000
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Smart IHD/CAD & Data Backup
Smart IHD/CAD Service Cost Smart Data Collection Cost Smart IHD/CAD Volume

£99.99 motion sensing HD camera.
▪ Discount on Netgear Arlo & Nest Cam and
Hive
Free 24 hour backup included in cost.
▪ 14% purchase smart camera
£9.99 fortnight and £19.99 monthly video
backup service
▪ 15% purchase additional fortnight video
backup
▪ 10% purchase monthly video backup
Up to 70% gross margin on video
backup and camera
▪ 14 days and 1 month
Smart Camera & Video Backup Service
0
20,000
40,000
60,000
80,000
100,000
120,000
£0
£100,000
£200,000
£300,000
£400,000
£500,000
£600,000
£700,000
£800,000
£900,000
Sep-17
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Smart Camera & Video Backup
Total Camera Revenues Total Camera Costs Smart Camera Volume

£9.99 per month includes £125 worth of
Smart home devices subsidised over 24
months.
▪ Smart hub
▪ Thermostat
▪ LED smart bulb
▪ Motion, door & window sensors
▪ Smoke & water detector
▪ Control/panic key fob
Up to 75% long-term gross margin on
fully subsidised smart home services.
Option to charge £4.99 to £9.99 for 24/7
central station monitoring.
Upsell additional smart home sensors
and cameras.
Smart Home Security & Safety
0
20,000
40,000
60,000
80,000
100,000
120,000
£0
£200,000
£400,000
£600,000
£800,000
£1,000,000
£1,200,000
£1,400,000
Sep-17
Nov-17
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Mar-18
May-18
Jul-18
Sep-18
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Mar-19
May-19
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Smart Home Security & Safety
Smart Home Revenue Total Smart Home Costs Smart Home Volume

How can we help you?
https://presciense.com/contact-us

Smart Home Opportunity for Telcos & Utilities

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